Pay off Rental House vs Investing in more now

[Eric Waters]

I'm curious to get the pulse of my fellow real estate investors. I currently have a rental house with a balance of about 37K. My goal is to pay it off free in clear by May. My question is in your opinion, would you pay that off first or use the funds to proceed with investing in an additional property or using it as a down payment for another property. 

My heart tells me to stick w/ the goal of paying it off first before buying another property.

Just want to hear your thoughts and look forward to the discussion.

Thanks

[Justin E.]

You may find this article interesting:

https://www.biggerpockets.com/renewsblog/2014/03/19/buying-more-or-paying-down-rental-properties/

In essence, you generally get a higher ROI with the more properties you buy with less money down. However, you are carrying multiple mortgages and there are certainly associated risks. Personally, I try to find solid opportunities and as many of them as I can. With today's rates, and only being 25, I would much rather spend 200k and buy 3 rentals with minimum down payments than buying one in cash -- at least for rental properties I am planning on keeping long term.

Cheers!